The loan processor: Dark cloud or silver lining?
Lend America receives approval for Ginnie Mae issuer statusMortgagePress.comLend America, Ginnie Mae, mortgage-backed securities, FHA lender Lend America, a privately-owned direct-to-consumer residential mortgage lender with a core focus on originating government-insured loans, announced that it has received approval to issue Government National Mortgage Association (Ginnie Mae) mortgage-backed securities (MBS). A Ginnie Mae security, which is a bundle of mortgages sold to investors and backed by the federal government, offers additional safety and liquidity and a higher yield over traditional treasury bonds, making them the most popular mortgage-backed security among investors. "As one of America's leading FHA lenders, we are very proud to become a Ginnie Mae approved issuer," commented Helene Decillis, chief operating officer for Lend America. "Not only does this approval affirm the quality and strength of Lend America's business, but it allows us to obtain better prices for our mortgages in the secondary market; thereby funding our ability to create additional loans to qualified, potential homeowners with more competitive terms." In order to become a qualified Ginnie Mae issuer, Lend America had to undergo a rigorous screening process to determine its suitability, specifically requiring the Company be an approved FHA mortgagee in good standing and possessing demonstrable experience and management capacity in underwriting, originating, and servicing mortgage loans. To maintain Ginnie Mae Issuer status, Lend America must submit annual and quarterly financial reports to demonstrate its continued financial stability, as well as meet several other requirements. "Almost three years ago, Lend America shifted its product mix away from sub-prime originations to focus primarily on FHA lending and is experiencing significant growth," added Decillis. "By acquiring Ginnie Mae's approval to issue mortgage-backed securities, Lend America is now in position to be a part of the solution for those borrowers who may have credit issues but are still qualified in this deteriorating credit and economic environment and drive continued profitable growth." For more information, visit www.lendamerica.com.